California Chamber of Commerce-supported job creator bills helping entrepreneurs and small business passed the Legislature this week and are headed to Governor Edmund G. Brown Jr.
• AB 2664 (Irwin; D-Thousand Oaks) provides resources for California innovators, entrepreneurs, startups, investors, and industry and community partners by providing the University of California (UC) with funds to expand its capacity and increase access to its innovation and entrepreneurship centers, which provide incubator space, legal services, entrepreneur training and more for researchers and other individuals looking to develop innovative solutions.
• SB 936 (Hertzberg; D-Van Nuys) encourages creation of small businesses by expanding their access to loans.
AB 2664: Entrepreneurship
The Assembly unanimously concurred in Senate amendments to AB 2664 on August 24, advancing the bill for consideration next by the Governor.
AB 2664 will direct funding for the UC system to support activities to expand or accelerate economic development that benefits entrepreneurs.
The UC’s innovation and entrepreneurship centers have a proven track record for helping to turn ideas into companies that provide jobs for Californians and help drive the state’s economy. AB 2664 would help the centers expand to keep up with the growing need for workspace and training for startups, and help attract private sector investors.
In exchange, the state will benefit from increased economic activity and job growth, as well as from the innovative solutions new companies are able to bring to market due to the help they receive from the UC system.
SB 936: Loan Access
SB 936 also has moved through the Legislature with unanimous support.
SB 936 encourages small business growth by expanding the availability of loans through the Infrastructure and Economic Development Bank’s (IBank) California Small Business Loan Guarantee Program.
The loan guarantee program helps businesses create and retain jobs. It promotes statewide economic development by supporting loans issued to small businesses that otherwise would not qualify. Small businesses establish a favorable credit history with a lender under this program and then are able to obtain future loans on their own. The program has been in place since 1968 with almost no defaults.
SB 936 increases the IBank’s ability to leverage state and federal funding, thus incentivizing private lending and economic investments. The loan guarantee program uses state and federal funding to create a loan loss reserve, which reduces the risk of lending to small businesses.